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Present Value Calculator

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What is Present Value Calculator?

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A present value calculator discounts a future cash flow or annuity back to its current worth, accounting for the time value of money at a given discount rate.

PrimeCalcPro provides professional-grade tools trusted by businesses and academics.

Formula

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f(x)PV = FV / (1 + r)ⁿ; PV of annuity = PMT × [(1 − (1+r)⁻ⁿ) / r]

Variable Legend

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Symbol	Ime	Enota	Opis
PV	Present Value	currency	—
FV	Future Value	currency	—
r	Discount rate	%	—
n	Time periods	—	—

How to Present Value Calculator

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1PV = FV / (1 + r)ⁿ
2PV of annuity = PMT × [1−(1+r)^−n] / r
3Higher discount rate = lower present value
4Used for investment decisions, bond pricing, and project appraisal

Worked Examples

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Example 1

Given:Receive $5,000 in 5 years, discount rate 6%

Rezultat:PV = $5,000 / 1.06⁵ = $5,000/1.3382 = $3,736

Real-World Applications

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Investment valuation and capital budgeting

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Lottery jackpot present value

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Lease vs buy decisions

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Pension and annuity valuations

Present Value of $10,000

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Discount rate	5 years	10 years	20 years
3%	$8,626	$7,441	$5,537
6%	$7,473	$5,584	$3,118
9%	$6,499	$4,224	$1,784
12%	$5,674	$3,220	$1,037

Frequently Asked Questions

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What's the time value of money?

$100 today > $100 in 5 years. Can invest today's money and earn returns.

What discount rate should I use?

Often your cost of capital or expected return. 5-10% typical for personal finance. Business: WACC.

How is PV used in investing?

Evaluate if future cash flows justify today's cost. If calculated PV > cost, invest. If < cost, reject.

References

›Present value — Investopedia

For informational purposes only. This tool does not constitute financial advice. Consult a qualified financial adviser before making investment or financial decisions.

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Reviewed October 2026

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Present Value Calculator